The survey showed that demand for housing registered its first decline for three months, plus the volume of applicants registering with agents fell by 0.5% over May compared to a 2.8% increase in April.
However, the volume of sales agreed grew by 1.6% over May, compared to 12.6% in March and 0.8% in April. The supply of homes continues to rise, growing by 3% over May.
Commenting, Richard Donnell, director of research at Hometrack, said: “Demand for housing fell for the first time in three months in May putting downward pressure on house prices once again... The late Easter break and May bank holidays reduced the volume of traffic through agents’ offices, but of greater significance is the growing evidence of weakening consumer confidence...
“With a slowdown in the number of sales being agreed, agents will look to reduce pricing levels of stock already on the market as a means of maintaining volumes and driving revenue. When demand starts to fall, sellers are typically forced to accept price reductions on their property.”
